Bitcoin price gained bullish momentum above $110,000 and traded to a new all-time high. BTC could extend gains and test the $120,000 resistance.
Bitcoin Price Starts Fresh Uptrend
After a daily close above the $105,000 level, Bitcoin price started a fresh increase. There was a steady bullish wave above the $106,500 and $108,000 resistance levels. The bulls were able to clear the $111,800 resistance to push the price in a positive zone.
The price traded to a new all-time high above the $116,500 level and settled above the 1.236 Fib extension level of the downward move from the $111,880 swing high to the $98,579 low.
Bitcoin prices show positive signs above the $115,000 level and the 50-day simple moving average (blue). The current price action and the last three daily candles suggest high chances of more upsides in the coming sessions.
If the bulls remain active above the $115,000 zone, they could push the price further higher. On the upside, immediate resistance is near the $118,800 level. The first major resistance is near the $118,500 level.
A close above the $118,500 resistance might spark more upsides. In the stated case, the price could attempt a move toward the $120,000 level. It could act as a strong resistance since it coincides with the 1.618 Fib extension level of the downward move from the $111,880 swing high to the $98,579 low.
In case, the bulls overcome the $120,000 hurdle, BTC price could rise toward the $122,000 level. Any more gains might call for a test of $125,000.
Downside Correction In BTC?
If Bitcoin bulls fail to push the price above $118,800, there could be a bearish reaction. Immediate support is near the $115,000 level. The first major support is near the $112,000 level. There is also a key bullish trend line forming with support near $112,000 on the daily chart.
A downside break and close below the $112,000 support might spark more losses and send the price further lower. In the stated case, Bitcoin could test the $106,500 support and the 50-day simple moving average (blue). The next key support could be $105,000.
If the bulls fail to protect the $105,000 zone, the price could start a major decline. In the stated case, the price could test the $101,500 support. Any more losses might call for the test of the $100,000 support.
Overall, Bitcoin is showing positive signs above the $112,000 level and the 50-day simple moving average (blue). A convincing close above the $118,800 level could initiate a strong surge, and the price could rally to $120,000.
